Earnings To Watch: Wix (WIX) Reports Q1 Results Tomorrow

Petr Huřťák /
2023/05/16 6:48 am EDT

Website design and e-commerce platform provider Wix.com (NASDAQ:WIX) will be announcing earnings results tomorrow before market open. Here's what investors should know.

Last quarter Wix reported revenues of $355 million, up 8.13% year on year, in line with analyst expectations. It was a decent quarter for the company, with very strong guidance for the next year.

Is Wix buy or sell heading into the earnings? Read our full analysis here, it's free.

This quarter analysts are expecting Wix's revenue to grow 8.11% year on year to $369.3 million, slowing down from the 12.3% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.16 per share.

Wix Total Revenue

Majority of analysts covering the company have reconfirmed their estimates over the last thirty days, suggesting they are expecting the business to stay the course heading into the earnings. The company only missed Wall St's revenue estimates once over the last two years, and has on average exceeded top line expectations by 0.89%.

Looking at Wix's peers in the sales and marketing software segment, some of them have already reported Q1 earnings results, giving us a hint what we can expect. Shopify delivered top-line growth of 25.3% year on year, beating analyst estimates by 5.06% and VeriSign reported revenues up 5.04% year on year, missing analyst estimates by 0.8%. Shopify traded up 21.2% on the results, VeriSign was flat on the results. Read our full analysis of Shopify's results here and VeriSign's results here.

Tech stocks have been facing declining investor sentiment in 2022 and while some of the software stocks have fared somewhat better, they have not been spared, with share price declining 3.05% over the last month. Wix is down 13.1% during the same time, and is heading into the earnings with analyst price target of $106.5, compared to share price of $79.

One way to find opportunities in the market is to watch for generational shifts in the economy. Almost every company is slowly finding itself becoming a technology company and facing cybersecurity risks and as a result, the demand for cloud-native cybersecurity is skyrocketing. This company is leading a massive technological shift in the industry and with revenue growth of 70% year on year and best-in-class SaaS metrics it should definitely be on your radar.

The author has no position in any of the stocks mentioned.